Should I buy Paras Defence stock in India in 2025?

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At HelloSafe, our expert has been tracking the performance of Paras Defence for over three years. Every month, lakhs of users in India trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Paras Defence.

What is Paras Defence?

The Paras Defence Stock Price

The price of Paras Defence stock is rising this week. As of now, Paras Defence is trading at ₹933.60 per share, posting a strong 24-hour gain of +10.00% and a weekly increase of +14.56%. The company has a market capitalization of ₹7,525 crores and an active three-month average daily volume of about 4.77 million shares. Paras Defence is currently valued at a P/E Ratio of 118.54, with a low dividend yield of 0.03% and a stock beta of 1.10. Short-term volatility is slightly above market average, but the recent upward momentum highlights strong investor interest and long-term growth potential in India's defence technology sector.

Our full analysis of the Paras Defence stock

After a thorough review of Paras Defence’s most recent financial results and its stock performance over the past three years, our proprietary algorithms have synthesized a broad spectrum of analytical sources: from financial ratios and technical signals to competitive benchmarking and market momentum. This integrated methodology provides a multidimensional perspective on the company’s growth and risk profile. So, why might Paras Defence stock once again become a strategic entry point into the defence and aerospace sector in 2025?

Recent performance and market context

Paras Defence has exhibited extraordinary momentum in what continues to be a highly dynamic and innovation-driven sector. As of July 2025, the stock is trading at ₹933.60, pushing higher by +10% in the past 24 hours and surging +14.56% this week. Over the last six months, the share price has gained a remarkable +84.95%, with a healthy +19.66% growth over the trailing twelve months. This bullish performance is amplified by robust quarterly financial results and a notable stock split, which has increased accessibility and market interest.

Key events driving this positive sentiment include a significant export contract to Cerbair, France (for 30 units of the flagship Chimera 200 anti-drone system), and beneficial sectoral moves such as the Indian government’s approval of a ₹1.05 lakh crore capital acquisition budget—directly favoring defence players with local production footprints like Paras Defence. The confluence of domestic “Make in India” initiatives and global security trends continues to create a highly favorable macro backdrop for the stock.

Technical analysis

Technical signals reinforce a strongly bullish outlook for Paras Defence. The current Relative Strength Index (RSI) is in the optimal range of 55-75, suggesting ongoing demand without yet entering the overbought territory. MACD and all major moving averages point upward in alignment, confirming strong upward momentum. The share price is advancing well above 20, 50, 100, and 200-day moving averages, a configuration that typically precedes sustained rallies.

The key technical support level lies at ₹856, while resistance is visible at the 52-week high of ₹972.50. Recent price action, characterized by powerful upside moves and a “very bullish” technical ranking, signals an environment where breakouts above resistance are increasingly likely. For investors seeking favorable risk/reward entry points, monitoring pullbacks toward support or consolidations ahead of new contract announcements could provide strategic opportunities.

Fundamental analysis

Paras Defence’s fundamentals are arguably among the most robust in India’s high-growth defence and aerospace landscape. In Q4 FY2025, the company delivered revenue of ₹112.28 crores—an impressive jump of +28.48% from the prior quarter—and net profit grew by +31.12% quarter-on-quarter to reach ₹19.72 crores. For the full year, top-line growth stood at +42.33% and net profit soared +97.97%. Over the previous three years, the company has achieved a compound annual revenue growth rate (CAGR) of 25.87%, outpacing most Indian listed peers.

While the price-to-earnings ratio sits at a premium 118.54—a function of rapid recent growth and strong market optimism—the valuation is justified by the company’s position as a sole supplier of critical imaging components for major Indian space applications and by its continuous expansion into high-margin export markets. The brand’s substantial investment in R&D, leadership in anti-drone and space optics innovation, and its status as a technology enabler for India’s strategic programs underpin structural profitability and reinforce a durable competitive moat.

Volume and liquidity

Market liquidity has consistently supported healthy price discovery for Paras Defence. The average daily trading volume is 4,770,643 shares on the NSE alone, reflecting high investor participation and efficient execution for both institutions and active individuals. With a market capitalization of ₹7,525 crores, the company offers both scale and float favorable to dynamic valuation. A diversified capital structure, with over 36% public shareholding and strong promoter confidence, enhances resilience against volatility while keeping the stock well-traded and visible.

Catalysts and positive outlook

• Government policy tailwinds: “Make in India” and record capital acquisition approvals have translated into steady order inflows for indigenous defence suppliers.
• International expansion: The recent Cerbair export order validates the company’s technological prowess and opens new markets for advanced defence solutions.
• Stock split and increased liquidity: The July 2025 1:2 stock split has lowered the share’s nominal value, extending market access to more investors and further supporting liquidity.
• Innovation leadership: Proprietary technologies in anti-drone systems, space optics, and EMP protection provide multiple levers for above-market growth—and diversify revenue streams.
• Operational excellence: The company has consistently surpassed street expectations for both revenue and earnings, a testament to quality execution and robust governance.
• Sector-wide demand surge: Escalating defence budgets and urgent technological upgrades in India and abroad set the context for sustained sectoral outperformance.

Notably, Paras Defence’s R&D pipeline, strategic partnerships, and continued government and export order visibility suggest momentum not just for the coming quarters, but for several years ahead.

Investment strategies

• Short-term entry: Take positions during technical consolidations near ₹856 support, or on anticipated contract announcements and positive earnings surprises.
• Medium-term positioning: Build exposure incrementally, as order wins and successful exports lead to earnings upgrades and further re-ratings in the sector.
• Long-term holding: Paras Defence’s unique leadership in high-growth defence verticals, along with India’s multi-year defence modernization drive, lay the foundation for compounding returns for patient investors.
• Event-based trades: Enter ahead of major government policy events, international contract wins, or new product launches—periods that historically trigger above-average volatility and upside moves.

Optimal results often come from proactively monitoring sector news and technical signals, while applying prudent risk management given the premium valuation and sector sensitivity to capital expenditure cycles.

Is it the right time to buy Paras Defence?

Examining its exceptional growth, technological moat, diversified revenue base, and sectoral tailwinds, Paras Defence stands out as one of the most compelling opportunities in the Indian technology and defence landscape. The fundamentals justify renewed interest, especially following strong earnings, transformative export contracts, and sector policy support. While valuation remains elevated, it reflects the market’s recognition of Paras Defence’s leadership and potential to benefit from national and international megatrends.

Given the confluence of technical, fundamental, and macroeconomic positives—all strongly favoring the company’s continued advance—Paras Defence seems to represent an excellent opportunity for investors seeking to capitalize on India’s defence innovation boom. The stock may be entering a new bullish phase, supported by robust demand, breakthrough technology, and sector-defining catalysts that warrant close attention in the months ahead.

How to buy Paras Defence stock in India?

Buying Paras Defence stock online is straightforward and secure with any SEBI-regulated broker in India. You can choose to buy shares outright (spot buying) for direct ownership, or opt for CFDs (Contracts for Difference) if you want to trade price movements with leverage. Both methods are accessible online, allowing you to tailor your investment to your goals and risk profile. For a detailed broker comparison to help you choose the best platform, simply refer further down the page.

Cash buying

Buying Paras Defence stock for cash means you purchase shares on the NSE or BSE, becoming a direct shareholder. Your broker will usually charge a fixed commission per order—typically around ₹100-₹200, or sometimes a percentage of the trade—the fee paid in INR.

Paras Defence Share Purchase Example

If the Paras Defence share price is ₹933.60 INR, you can buy around 1 share with a $1,000 stake, including a brokerage fee of around $5.

• ✔️ Gain scenario:
• If the share price rises by 10%, your holding would be worth $1,100.
• Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFDs on Paras Defence allow you to speculate on share price movements without owning the stock, using leverage to amplify your exposure. Fees include the bid-ask spread and daily overnight financing if you hold positions for more than a day.

Example of a CFD position with leverage

You open a CFD position on Paras Defence shares, with 5x leverage. This gives you a market exposure of $5,000 for an initial $1,000 investment.

• ✔️ Gain scenario:
• If the stock rises by 8%, your position gains 8% × 5 = 40%.
• Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before investing in Paras Defence, always compare each broker's fees, service conditions, and platform features to maximise your returns. Every investor should select the buying method that suits their objectives, experience, and risk tolerance. For assistance in choosing, see our comparison of leading brokers further down the page.

Our 7 Tips for Buying Paras Defence Stock

The latest news about Paras Defence

Paras Defence stock surged by 10% intraday and 14.56% for the week on strong buying momentum. Investors responded positively to bullish technical signals and recent financial outperformance, pushing shares to record volumes and near their 52-week highs, reflecting growing sector optimism and robust interest in Indian defence equities.

The company reported a standout quarterly performance, beating expectations on both revenue and net profit growth. For the most recent quarter, Paras Defence posted ₹112.28 crores in revenue (up 28.5% sequentially) and net profit of ₹19.72 crores, up 31.1% over the previous quarter, confirming accelerated operational and financial momentum as defence orders ramp up.

A stock split became effective this week, doubling share count and increasing retail liquidity for Paras Defence. The 1:2 split reduced the nominal value from ₹10 to ₹5 per share, making the stock more accessible for individual investors and potentially enhancing trading activity in the Indian equities market.

Paras Defence secured a significant export order from France, strengthening its international credentials. A €2.2 million Letter of Intent from Cerbair for 30 CHIMERA 200 anti-drone systems reinforces the company’s export drive and underpins its reputation as an innovator in critical defence technologies, with strategic implications for India’s global technology footprint.

The Indian government’s Defence Acquisition Council approved large capital purchases that benefit companies like Paras Defence directly. Recent approvals worth nearly ₹1.05 lakh crore in new capital acquisition strongly support domestic manufacturers, adding a favourable policy tailwind to Paras Defence’s growth prospects while strengthening the country’s "Make in India" program.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.